Facebook (Meta) has done plenty of naughty things over the years, but none quite as nefarious as the Cambridge Analytics scandal. In 2018, the company was found to be allowing UK politics analyst firm Cambridge Analytics to harvest private data from millions of users. Four years later, Meta has finally reached a settlement in the class-action lawsuit.
Reuters reports that Facebook (Meta) will pay $725 million to settle the case. The 73-page document highlights how difficult the case has been and that it has had a positive impact on the tech industry. As for the result, this is the largest settlement in Meta/Facebook’s history. Furthermore, it is the highest payment ever in a class-action related to data privacy.
However, as part of the settlement Meta is admitting no wrongdoing.
“The amount of the recovery is particularly striking given that Facebook argued that its users consented to the practices at issue, and that the class suffered no actual damages. Plaintiffs dispute these characterizations, but acknowledge that they faced tremendous risks in this novel and complex case. In addition to the monetary relief obtained by Plaintiffs, Facebook has meaningfully changed the practices that gave rise to Plaintiffs’ allegations, as set forth in the declarations of two Facebook employees with knowledge of those facts.
Significantly, since this case started, Facebook has ceased allowing third parties to access data about users through their friends, has meaningfully enhanced its ability to restrict and monitor how third parties acquire and use Facebook users’ information, and developed more robust tools to tell users what information Facebook collects and shares about them.”
Since the revelations against Cambridge Analytics, the company filed for solvency and is now defunct. Facebook this year rebranded as Meta, in part to distance the company’s metaverse growth from the bad reputation of the social network.
Regulators have been increasing strict on Big Tech companies abusing their power. Also this week, Microsoft was hit with a $64 million fine by French authorities for not providing Bing users with a way to opt out of cookies.
Even so, consumers are also under the microscope. In the UK, the government’s Intellectual Property Office (IPO) this week took a stand against password sharing. According to the office, password sharing on Netflix and other streaming platforms violates copyright laws and is illegal.
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